Cattle Cattle oph B A) Graph A B) Graph B C) Graph C D) either Graph A or Graph C E) either Graph B or Graph C Llamas Cattle Llamas 18) Refer to Figure 2.3. Sergio Vignetto raises cattle and llamas on his land. His land is equally suitable for raising either animal. Which of the graphs in Figure 2.3 represent his production possibilities frontier? Graph C Llamas
Q: The speculative demand for money is... A. positively related to interest rates. B.…
A: Speculative Demand for Money : The speculative demand for money is the demand for money when the…
Q: Suppose that Bob and Cho represent the only two consumers of laundry detergent in some hypothetical…
A: The demand curve is the downward sloping curve. Equilibrium is where the demand curve intersects the…
Q: 3. Using the graph below, show the market equilibrium when a $30 per-unit tax is imposed. 4. What…
A: The loss of economic efficiency that occurs when the equilibrium of a market is not at the optimal…
Q: Hersheypark in Pennsylvania mentions the following offer on its Web page: “A military discount is…
A: This can be described as the concept that a producer or seller offers its commodity or service at…
Q: A decrease in the price of a substitute good would be represented by a movement from
A: Two goods are substitutes if the products could be used for the same purpose by the consumers. That…
Q: For a price ceiling to be binding, it must be set Choose one: A. below the equilibrium price. B.…
A: A price ceiling is a government-imposed maximum price on a good or service. If the price ceiling is…
Q: Given a demand curve of P = 1200 - 40Qd and supply of P = 200 + 10Qs and a binding price control at…
A: Transfer of Surplus: Transfer of surplus refers to the change in consumer surplus and producer…
Q: The following graph gives the labor market for laboratory aides in the imaginary country of Paideia.…
A: Demand-supply equilibrium:The demand function reflects an individual’s willingness to pay for each…
Q: It is well-known that when a couple ‘lives together before marriage,’ then this increases the chance…
A: Opportunity costs refer to the next best option that is available to the person. It refers to the…
Q: Question 7 Total revenue increases as price increases, as long as demand is elastic. always…
A: Total revenue is the total income generated by selling goods or services in the…
Q: Sam's extended family spends $3,200 per month on wine and beer. Their utility function is given by…
A: The utility will be maximized when the ratios of marginal utility to price are equal. It helps to…
Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…
A: Formula for the future value of annuity is given as:
Q: According to globalization opponents, what is a disadvantage of globalization? Multiple Choice Free…
A: Globalization refers to the process of increasing interconnectedness and integration of economies,…
Q: Required information Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for…
A: Present value refers to the current value of a future sum of money or stream of cash flows given a…
Q: Use the figure to answer the following questions. Explain your reasoning and show your answers on…
A: An inflationary gap occurs when the actual level of aggregate demand (the total demand for goods and…
Q: economy GDP is currently 3 trillion dollars, and the price level is 130. PRICE LEVEL 170 110 Changes…
A: A self-regulating economy is a concept of economics that explains that, under certain situations,…
Q: Major economic issues facing our society and, in particular, my generation today, I believe, would…
A: The problem at hand is the significant and rising inflation that is adversely affecting your…
Q: If the production of wheat increases from point B to point A, what is the opportunity cost in…
A: The PPF is also referred to as the production possibility curve (PPC). It is a key economic concept…
Q: Answer the next question on the basis of the following demand schedule. Price $6 5 4 3 2 1 Quantity…
A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…
Q: Suppose that the annual rates of growth of real GDP in Econoland over a five-year period were…
A: The growth of real GDP refers to the increase in the inflation-adjusted value of all goods and…
Q: Suppose that the demand function for cigarettes is given as Qd=800-40P, and the supply function is…
A: A market demand function, regularly denoted as Q or D, represents the complete extent of a unique…
Q: In 2015, the weather conditions were better than normal, leading to higher rainfalls filling up the…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: 19) Accounting costs and economic costs differ because A) Economic costs include explicit costs and…
A: Total revenue is the product of price and quantity. Monetary expenses are the explicit cost.…
Q: se the following graphs to answer the next question. 12 0 $75 150 225 Market Price Level 0 AS…
A: The aggregate supply and aggregate demand ( AS-AD) model depicts the interaction between AS and AD.…
Q: If a small country, such as Argentina, attempts to fix its currency exchange rate with the United…
A: It can be defined as the concept that shows when a nation fixed its rate of exchange with the…
Q: In the following 3-player sequential game, the order of the players changes with Ann's decision. An…
A: The following 3-player sequential game is given below:There are three players in the game: Ann, Beth…
Q: The demand and supply of coffee are shown here, with an equilibrium price of $4 per pound and an…
A: We have given a demand and supply curve for coffee. The equilibrium price is $4 per pound and the…
Q: he manager of Greene Enterprises, Inc., recently estimated its average variable cost (AVC) function…
A: The variable cost refers to the cost that changes with change in the level of output. While the…
Q: The value of multiplier always becomes greater than one except a special case of Balanced Budget…
A: A major concept in economics is the fiscal multiplier, which quantifies the effect of fiscal policy…
Q: Your company has a customer who is shutting down a production line, and it is your responsibility to…
A: Profit maximization in economics refers to the goal of a firm to maximize its net income by…
Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…
A: An annuity is defined as a series of payments which are of fixed amounts at fixed intervals.There…
Q: Two methods can be used for producing solar panels for electric power generation. Method 1 will have…
A: The Annual worth approach is highly popular in business since it instantly turns all future costs…
Q: A company's wages and salaries are part of its value added. Suppose, however, that the cleaning and…
A: When a company contracts out work that was previously done by its own employees, the company's value…
Q: Can someone explain why this is the correct answer?? Assuming GDP falls by 6 percent in 2020,…
A: A country's entire economic production for a certain period of time, usually a year, is measured by…
Q: Table 24-4 The table below pertains to an economy with only two goods - books and calculators. The…
A: The inflation rate measures the percentage change in prices over time. The inflation rate can be…
Q: A group with the most power is considered the dominant group in a culture while the less powerful…
A: Majority and minority are two types of groups.When there is unequal distribution of any population,…
Q: Figure 5-1 PRICE 2.67. 7 1.5. 10 0.67. Demand 12 Refer to Figure 5-1. Between point A and point B,…
A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…
Q: As the sole issuer of Canadian money, the Bank of Canada can set any one of three variables: 1) the…
A: A central bank is a financial institution that serves as the primary authority responsible for…
Q: Consider the following ppfs. Apples 300 Canada Apples 100 10 70 LE 30 20 40 60 80 130 120 140 160…
A: Opportunity cost is the next best alternative.Opportunity cost shows the forgone units of one good…
Q: The following graph shows the loanable funds market. For each of the given scenarios, adjust the…
A: Loanable Funds Market: In the market for loanable funds there are economic agents like governments,…
Q: South Korea to Resume US Beef Imports South Korea will open its market to most U.S. beef. South…
A: South Korea opened its trade with the US market to trade beef. The trade was closed owing to mad cow…
Q: To an economist, shutting down makes sense if at the quantity where MC - MR, the price is less than…
A: The shutdown point, in economics, refers to the level of production at which a firm decides to…
Q: A sum of $10,000 now (time 0) is equivalent to the following cash-flow diagram: $3,000 $B $2,000 TID…
A: A present value (PV) or present worth (PW) computation tells you how much money would be needed now…
Q: Assuming the Marshall-Lerner condition holds and using the ZZ/Y and NX graphs, illustrate…
A: The Marshall–Lerner condition is satisfied if the absolute sum of a country's export and import…
Q: If the growth rate of the money supply is 0.06, the growth rate of output is 0.04, and the velocity…
A: Inflation is the rate at which the general price level of goods and services is rising. It is…
Q: Quantity 1 2 3 4 5 6 7 Firm 4 Firm 3 Long-Run Total Cost (Dollars) Firm 1 Firm 1 180 350 510 660 800…
A: Average cost refers to cost per unit of output. It is calculated as total cost divided by quantity…
Q: hange in Demand Determinants: The PRC's increased demand for US crop products, such as corn and…
A: Demand is the desire backed by a willingness and the ability to pay by an individual. The summation…
Q: Complete the following table, given the information presented on the graph. Result Equilibrium…
A: Taxes are mandatory fees levied by the government on an individual or a business firm. A tax when…
Q: Suppose you are given the following demand data for a product. Price $10 9 8 7 6 Quantity Demanded…
A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…
Q: Suppose Dell is currently selling 3,000,000 computers per year. However, managers at Dell are…
A: Production alludes to the method involved with making goods or services by changing inputs (such as…
Step by step
Solved in 4 steps
- Specify and explain the typical shapes of marginal-benefifit and marginal-cost curves. How are these curves used to determine the optimal allocation of resources to a particular product? If current output is such that marginal cost exceeds marginal benefifit, should more or fewer resources be allocated to this product? Explain.(a) Explain with the help of a graph the effect of an increase in the relative price of a labor-intensive good on input choice. (b) “Generally, an economy will tend to be relatively effective atproducing goods that are intensive in the factors with which the country is relatively wellendowed.” Explain the above statement with the help of a graph.Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?
- Question 1.B Complete the following table and illustrate by graph following variables (TFC, TVC, TC, MC) Q TFC TVC TC MC ATFC ATVC ATC 0 20 0 1 35 2 38 3 40 4 55Economics Question17. For a certain good the production function is given by the equation q = q²qc, where q is the produced output in units of 1000 and qL and qc are the number of units of labour and of capital invested in the production process. Assume that one unit of labour costs 10 units of money and one unit of capital costs 5 units of money. (a) Show on a graph which combinations (qL, qc) generate exactly 64 000 units of output. Put qL on the horizontal axis of the graph and qc on the vertical axis. (b) Explain how one can see on the graph of part a which combinations (qL, qc) allow to produce 64 000 units using a budget of exactly 100 units of money. (c) Explain how one can see on the graph of part a which combinations (qL, qc) allow to produce 64 000 units in the cheapest possible way.
- Frances is a skilled toy maker who is able to produce both trucks and drums. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. Choice Hours Producing Produced (Trucks) (Drums) (Trucks) (Drums) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 18 E 0 8 0 19 Suppose Frances is currently using combination D, producing one truck per day. Her opportunity cost of producing a second truck per day is _______. Now, suppose Frances is currently using combination C, producing two trucks per day. Her opportunity cost of producing a third truck per day is ________ per day. From the previous analysis, you can determine that as Frances increases her production of trucks, her opportunity cost of producing one more truck _______. Because she can now make more trucks per hour, Frances's opportunity cost of producing drums is…If 10 million toy cars are sold. which means that: The production of toy cars is currently at an inefficient level, and to reach efficiency more should be produced. From the data given it is impossible to tell if toy cars are being produced at the efficient level. O The production of toy cars is currently at an inefficient level, and to reach efficiency less should be produced. The production of toy cars is currently at the efficient level. IF 30 million toy cars are sold, - vwhich means that: The production of toy cars is currently at an inefficient level, and to reach efficiency more should be produced. O From the data given it is impossible to tell if toy cars are being produced at the efficient level. The production of toy cars is currently at the efficient level. The production of toy cars is currently at an inefficient level, and to reach efficiency less should be produced. The optimal allocation of resources would result in the production of toy cars.Meat (pounds) 120 A 90 D 60 В 30 Vegetables (pounds) 40 60 80 100 120 140 160 Point B is: O Infeasible Inconsistent Inconceivable O Inefficient 20
- MNLOGS harvested logs (with no inputs from othher companies) from their property in northern Minnesota. They sold these logs to MNLumber for $1,500 and MNLumber cut and planed the logs into lumber. MNLumber then sold the lumber for $3,000 to MNFurniture. MNFurniture used the lumber to produce 100 tables that they sold to customers for $80 each. Instructions: Enter your responses as whole numbers. a. Complete the table below to calculate the value added by each firm. Cost of purchased inputs Company Revenues Value added $ MNLOGS $ $ $ MNLumber $ $ MNFurniture b. Suppose that all of these transactions took place in 2014. By how much did GDP increase because of these transactions? $ c. Suppose that MNLogs harvested the logs in October 2014 and sold them to MNLumber in December 2014. MNLumber then sold the finished lumber to MNFurniture in April 2015 and MNFurniture sold all 100 tables during the rest of 2015. By how much did GDP increase in 2014 and 2015 because of these transactions? GDP…(Figure: Recliners and Couches) American Signature is a furniture company based in Columbus, Ohio. The graph represents American Signature's production possibility frontier for manufacturing couches and recliners. If American Signature manufactures 100,000 couches and 400,000 recliners, the company's use of resources would be , and the company could production. Ⓒa. inefficient; decrease Ob. efficient, increase O c. efficient; decrease Od. inefficient; increaseSalsa (ounces) Budget constraint B A LL E U 1 D 3 5 4 2 Corn chips (bags)